Oil and Gas Processing Investment Incentive (OGPII)
The Oil and Gas Processing Investment Incentive (OGPII) offers transferable Crown royalty and freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs.
OGPII is open to value-added projects across all segments of Saskatchewan's oil, gas, helium, and lithium sectors as well as chemical fertilizer facilities. Eligible projects include:
- Refineries/upgrading facilities (i.e.,. partial upgraders, asphalt production, and sulphur removal units);
- Petrochemical facilities (i.e., methanol, ammonia, polypropylene, olefins, and ethylene)
- Associated gas commercialization projects (ex. processing facilities, waste-gas-to-power etc.)
- Regional gas gathering projects and projects with multiple phases may also be considered under a single project application
- Helium processing or liquefaction facilities
- Carbon capture, utilization, and storage for enhanced oil recovery
- Commercialization of oil and gas production byproducts and waste products (i.e., lithium extraction from produced oilfield water)
- Chemical fertilizer facilities
- Lithium processing facilities
OGPII is administered by the Ministry of Energy and Resources.
- The royalty credits are fully transferable which gives non-producers/non-royalty payers an opportunity to benefit from the program, because they have the ability to transfer credits to oil, gas, and helium Crown royalty and freehold production tax payers. Also, OGPII encourages multi-company projects as costs can be incurred by a firm other than the principal applicant.
- OGPII has a project-specific awarded credit cap of CAD$75 million (i.e., a CAD$500 million project) for oil, gas, helium and lithium projects, and CAD$70 million for chemical fertilizer projects.
- Credits can be claimed at a rate of 20 per cent of total credits in the first calendar year of operations, 30 per cent in the second calendar year, and 50 per cent in the third calendar year.
- OGPII can be used alongside other incentive and grant programs available in Saskatchewan.
- Eligible Activity – all activities that add or create value by processing, transforming and/or upgrading upstream oil, gas, helium and lithium industry products, by commercializing upstream oil and gas production byproducts and waste products, or by increasing value-added chemical fertilizer production may be considered eligible. Eligible projects can include new (greenfield) facilities, expansions (brownfield) of existing facilities, and all enabling infrastructure required to bring the project into operation.
- Increase in Processing Capacity – the Ministry of Energy and Resources must be satisfied that the project results in a significant increase processing capacity in Saskatchewan's oil, gas, helium, lithium or chemical fertilizer industry.
- Eligible Costs – the eligible project must involve a minimum investment of CAD$10 million in eligible costs.
3. How to Apply
To apply for the OGPII program, companies need to complete and submit the OGPII Application Form. If you have questions about the application process, refer to the OGPII Program Overview and Application Instructions or contact firstname.lastname@example.org. Completed OGPII Application Forms may be submitted to the Ministry of Energy and Resources via email@example.com.
The ministry will be accepting applications from 8:00 a.m. (CST) on July 8, 2019 to March 31, 2024.
4. Application Documents
5. Further Information
For additional information on the program, contact firstname.lastname@example.org.
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